- Earnings per share of $1.85, slightly above estimates.
- Revenue of $18.1 billion, missing the forecast by $1.5 billion.
- Full-year sales growth guidance upgraded to 8-10%, with underlying EBIT expected to rise by 9-11%.
BAE Systems PLC (OTC:BAESY) is a leading British defense contractor known for its advanced technology and services in the aerospace and security sectors. The company competes with other major defense firms like Lockheed Martin and Northrop Grumman. On July 30, 2025, BAESY reported earnings per share of $1.85, slightly above the estimated $1.84, but its revenue of $18.1 billion fell short of the $19.6 billion forecast.
During the H1 2025 earnings call, key executives, including CFO Bradley Madsen Greve and CEO Charles Nicholas Woodburn, discussed the company’s financial performance and strategic direction. Despite missing revenue estimates, BAE Systems upgraded its full-year guidance, reflecting strong operational performance. Sales for the first half of 2025 reached £14.6 billion, an 11% increase from the previous year.
The company’s underlying profit (EBIT) rose by 13% to £1.55 billion, while the reported operating profit increased by 2% to £1.3 billion. This growth is partly due to significant acquisitions like Ball Aerospace. BAE Systems now expects full-year sales growth of 8-10%, up from the previous 7-9% forecast, and anticipates underlying EBIT to rise by 9-11%.
BAESY’s financial metrics provide further insights into its performance. The company has a price-to-earnings (P/E) ratio of 29.85, indicating investor confidence in its earnings potential. Its price-to-sales ratio is 2.14, and the enterprise value to sales ratio is 2.42, reflecting the market’s valuation of its sales. The enterprise value to operating cash flow ratio stands at 20.33, showing the company’s valuation relative to its cash flow.
The company’s debt-to-equity ratio is 0.87, suggesting a balanced approach to financing its assets. With a current ratio of 0.95, BAE Systems demonstrates its ability to cover short-term liabilities with short-term assets. Despite the unchanged guidance for underlying earnings per share at 8-10%, the company maintains a free cash flow target of at least £1.1 billion, highlighting its strong financial position.
